(bright lively music)
-: But still, there are many markets
where traditional retail is dominating.
So why is it dominating?
We believe it's dominating
because traditional outlets are actually really serving
the needs of the African consumers in those markets.
They are flexible. They have the right offer.
They can even offer you credits
for the bottom part of the pyramid if need be.
And those are things that modern retailers
have not fully managed to address in many markets.
And that's why they are here dominating.
And also, that's why we believe they're here to stay
for quite a long period.
But the one thing that we believe is going to stay
and is in the future of African retail
is that it needs to be local and modern.
What do we mean by local and modern?
Local means we need to really address the needs
of the consumers in those specific markets,
in those specific communities.
And modern means that it's not only addressing those needs,
but it's also continuing to adapt and modernize
in terms of digital offering, new offering,
new ways to partner with all the ecosystem
that is around all the retailers
that are playing in those markets.
So if you look at Nigeria,
today Nigeria is completely dominated
by traditional retailers, so 95% plus, I would say.
If you fast-forward ten years,
we don't see that really changing.
We see a lot of growth in modern retail
but it will still remain small compared to traditional retail.
Why is that?
For many different reasons.
I mean, it's very difficult to get real estate
in Nigeria to actually have a modern retail store.
It's really difficult also to get the goods
to the level that you want
in a consistent way in a market.
And so Nigeria, we think,
is going to remain completely traditional.
As traditional shops are here to stay
in the landscape of African retail,
there is an opportunity for all the players
in the ecosystem to actually work with them
and help them achieve even more growth
and develop further to better serve the consumers in Africa.
So what is the interaction
between modern trade and traditional trade?
Again, this is something that could actually work
to the advantage of both parties of the ecosystem.
So for instance, think about modern retailers.
They could put in place some franchise models across
the continents to actually enroll the traditional shops
as a franchisee of theirs.
And in this way, they could provide stable products
to those shops, help them with promotion,
help them with planograms,
help them to do with many different skills
that they don't necessarily have today.
(bright music)